Kauai (pronounced ka-why) has spent 12 years developing their brand and cutting their own niche in a new market. There are currently 74 outlets, mainly company-owned, and this is the first time that the company has aggressively targeted the franchise model, giving hands-on investors the opportunity to own a Kauai franchise store.
“The platform is now ready to support franchisees with an aggressive store roll-out and we plan to open 20 franchise stores in the next year. In addition, we are also offering franchisees the opportunity to take over selected company-owned stores, the benefit being that a franchisee can buy into a business with a strong track record and low risk. We believe that these stores will benefit from having a community member in place to maximise the store's potential,” said the chain's Business Development Director, Guy Le Ray-Cook.
According to Le Ray-Cook, the benefits of owning one of their franchises include 12 years of successful trading history, pre-approved finance for applicants with sufficient capital backing, a growing marketing fund and being a part of a market segment leader with no major competitors. He said that as a guideline, franchisees of successful stores could see a full return on investment in two to five years.
The cost of buying a franchise store is R1.1 million and a franchise fee of R110,000 (excluding VAT) and working capital. A deposit of R400,000 is required in cash. Applicants are to pay a royalty fee of 6%, which includes use of the brand and field support; and a 4% marketing fee, that is held separately and used exclusively to build brand awareness.
Franchisees will undergo a two-month training course at one of the chain's dedicated training stores, and receive ongoing field-service support from consultants who have experience in running their own stores.
